XRP Gains Major DeFi Utility as FXRP Unlocks RLUSD Loans

XRP Enters a Major Ethereum Lending Vault

Institutional decentralized finance (DeFi) platform Sentora announced on Aug. 3 that FXRP had joined its RLUSD Main vault on Morpho, giving XRP holders a new route into onchain credit. Investors can convert XRP into FXRP, move it to Ethereum, and borrow Ripple’s RLUSD stablecoin while retaining exposure to XRP.

The integration represents a significant expansion of XRP’s financial utility beyond transfers and payments, particularly for holders seeking liquidity without selling their XRP. Sentora described FXRP as the first XRP representation accepted as collateral within an institutionally curated lending vault on Ethereum mainnet, while noting the vault holds a reported approximately $280 million in deposited RLUSD.

Jesus Rodriguez, Sentora co-founder and chief technology and product officer, stated:

“XRP is one of the largest and most liquid digital assets in the market. By enabling FXRP as collateral in our RLUSD vaults, we are bringing that scale into DeFi and expanding the productive utility of XRP across onchain credit markets.”

Borrowers access an isolated FXRP/RLUSD market within the Sentora RLUSD Main vault, which uses Morpho Blue lending infrastructure. Each isolated market has its own collateral, debt asset, oracle, and liquidation loan-to-value (LTV) ratio, limiting the effect of problems within one market on other vault allocations.

FXRP Turns XRP Into Programmable Collateral

The FAssets system creates FXRP as a one-to-one representation of XRP that can operate within Ethereum Virtual Machine (EVM)-compatible applications. Users begin with an XRP transaction on the XRP Ledger, after which Flare verifies the transaction and mints the corresponding FXRP through Flare’s FAssets system, enabling lending, trading, vault strategies, and other programmable uses.

This structure gives XRP functionality that its native ledger was not designed to deliver through Ethereum-style smart contracts. The XRP Ledger processes XRP transfers and settlements, while FXRP connects that liquidity with decentralized applications operating across Flare and other compatible networks.

Sentora’s launch requires borrowers to mint FXRP on Flare, bridge it to Ethereum, deposit it within the isolated market, and borrow RLUSD up to the market’s permitted ratio. Direct minting from the XRP Ledger to Ethereum remains under development, which would simplify the process by removing the separate bridging step.

DeFi Demand Broadens XRP’s Investment Case

FXRP had already expanded XRP’s onchain presence before entering Sentora’s vault, with holders deploying the tokenized asset through lending markets, liquidity pools, and yield strategies. Earlier activity showed FXRP moving from minting into DeFi vaults, establishing a foundation for the latest Ethereum credit integration and a wider range of capital-management options.

Onchain network data shows FXRP holders are actively deploying their tokens across decentralized finance protocols rather than leaving them idle in wallets. Figures cited in Flare data showing real XRP DeFi demand link growing FXRP supply with deployment across decentralized applications, supporting an investment case tied to measurable onchain activity rather than transfers alone.

This activity strengthens XRP’s position as collateral that can support borrowing, trading, liquidity provision, and treasury financing across several networks. For long-term holders, access to RLUSD creates a dollar-denominated funding option that preserves XRP exposure, while lenders gain another collateral market within a vault managed under Sentora’s allocation and monitoring standards.

Hyperliquid Markets Extend FXRP Liquidity

FXRP’s expansion has also reached Hyperliquid, where new spot markets connect XRP-linked liquidity with decentralized trading infrastructure. Flare previously supported the first FXRP spot market on Hyperliquid, introducing an FXRP/USDC pair intended to improve spot access, capital movement, and trading opportunities across the XRP Ledger, Flare, and HyperEVM.

A subsequent FXRP/USDH market broadened the available quote assets and gave traders another venue for managing XRP-linked positions. The launch positioned FXRP as an XRP asset for Hyperliquid, while more than 90 million XRP had reportedly been converted into FXRP and nearly 80% of minted supply was deployed in decentralized finance protocols.

Sentora initially placed a conservative supply cap on the FXRP/RLUSD market, with capacity expected to expand alongside liquidity and usage. The firm evaluates collateral behavior, oracle reliability, liquidation liquidity, and withdrawal conditions before increasing exposure, placing FXRP under the same ongoing monitoring framework applied to other assets in the vault.